How to Become a Real Estate Agent in Michigan

Want to become a real estate agent in Michigan?

Before you can start helping people buy and sell homes, you have to get licensed with the state. In Michigan you don’t need a college degree, you just need to be at least 18 years old and follow a few simple steps to get licensed. We’re going to share everything you need to know about getting your Michigan real estate license, including:


Woman showing home after getting a real estate license in Michigan

6 Steps to Get a Real Estate License in Michigan

According to the Michigan Licensing and Regulatory Affairs (LARA), you need to be at least 18 years old and of good moral character. You’ll also need to follow a few simple steps to become a real estate agent in Michigan.

Step 1 | Complete Real Estate Fundamentals Course

The Michigan pre-licensing real estate course is just 40 hours. You just have to complete the course online or in-person and pass the final course exam with a minimum score of 70%.

Step 2 | Submit Your Michigan Real Estate License Application

Visit the Michigan Licensing and Regulatory Affairs website to apply for your real estate license.
The site will ask you to create an account and submit payment for the licensing application.

Please note: You’re not required to have a brokerage when completing the application, but if you’ve already selected a real estate brokerage to work with, please list your broker’s 10-digit employer number when completing the Michigan real estate license application. The application fee is $88 when you list the brokerage you’ll be joining.

Step 3 | Register for the MI Real Estate Exam

Once your Michigan real estate license application is approved by LARA, you’ll receive an email from the state that will let you know you are authorized to register for the real estate examination. They will also send you a 6-digit exam candidate number and instructions for your upcoming exam.

Step 4 | Contact PSI to Schedule Exam

Once you have the candidate number (also called your MIRE #), you can schedule your real estate state exam by calling PSI at (855)579-4635 or visiting PSIexams.com. The examination fee is $76. The fee is typically paid to PSI using a credit card, but you should have the option to also use a money order or cashier’s check.

Step 5 | Take & Pass Real Estate Exam

To pass the exam, you’ll need a minimum score of 70%. All of the exams are in person and there are seven different PSI locations around the state to choose from. Please note that if you are able to select and confirm sponsorship with a real estate broker at least 48 hours prior to your exam date, you will receive the photo pocket license at the PSI Exam Site upon successful completion of your exam.

Step 6 | Select Your Real Estate Broker

You can interview and select a real estate broker (aka “sponsoring broker”) at any point in the five steps above, but if you haven’t selected one after passing the Michigan real estate exam, now is the time! In order to practice as a real estate salesperson, you must be sponsored by a licensed Michigan Employing Broker. If you did not confirm a broker before the exam, you can do it afterward through LARA’s website.


Group of people in real estate school

Approved Real Estate Schools in Michigan

To become a real estate agent in Michigan, you’ll have to attend a school that’s approved by the State of Michigan Department of Licensing and Regulatory Affairs (LARA). There are quite a few approved real estate schools. Some are online, others in person, and a few do a combination of the two. Here are a few of the most popular:

When you are shopping for the best pre-license real estate schools, make sure that they offer additional support for exam prep and sample exams for practice. Some schools even offer cram courses or exam prep courses to ensure that you pass the state exam on the first try. Click here to view the complete list of approved real estate schools in Michigan.

How Choose a Real Estate Brokerage

In Michigan, you must affiliate with a real estate brokerage in order to activate your real estate license. This is often referred to as the “sponsoring broker.” Picking the right broker or brokerage to work with can be critical to your success as a newly licensed agent.

We would recommend shopping for the best broker once you’ve completed the pre-licensing course and are waiting to take your state exam. There are a few ways to do this:

  • Ask friends + local agents. Find out which brokerages your friends and family have worked with in the past and see what they liked most about them. Don’t hesitate to reach out to local agents in your area to see what they like most about their broker.
  • Look around your neighborhood. Take a drive around your neighborhood and see which brokerage signs you see most often. If there are a few that seem to have a lot of listings, take a peek at their website as though you’re the consumer (i.e. a home buyer or seller).
  • Research online. Once you’ve narrowed down your choices to 3 to 5 companies, do some research online. There are always dozens of broker reviews and testmonials from from real estate agents who’ve worked for the broker.
  • Check out Facebook/Meta. There are quite a few Facebook groups for aspiring agents and you’ll get lots of (honest) feedback from agents at different brokerages.
  • Schedule interviews. We highly recommend meeting with two or three brokerages, because the benefits and compentation plans can be dramatically different.
20 Questions You Should Ask When Interviewing Brokers >

As a newly licensed real estate agent, the most important thing you should look for in a brokerage is how they support brand new real estate agents. It’s not always about the commission splits! Find out if they have a formal training course for new agents. Will you have at least 3 people you can reach out to if you have questions? Do they have dedicated mentors for new agents – and what exactly will the mentors do to assist you?

Man calculating cost to become a real estate agent in Michigan

Cost to Get a Real Estate License in Michigan

There are several costs when working to become a real estate agent in Michigan, the most expensive being your real estate class:

  • Michigan Pre-License Real Estate Course (Real Estate Fundamentals) – $155 to $350
  • State Application Fee – $88
  • Real Estate Exam Fee – $76
** Total Cost to Become a Real Estate Agent in Michigan – $300 to $500

Other Expenses to Expect as a Real Estate Agent

Obtaining a license is only the first step! When it comes to becoming a real estate agent, there are a number of extra costs to consider. After all, whether you’re founding a coffee shop or launching your real estate empire, you’re starting from scratch and there are always costs involved.

Here are some of the most common expenses for REALTORS:

  • Brokerage Joining Fee – ranges from $0 to $600 (average is around $250)
  • Monthly Brokerage Fee – ranges from $0 to $300 monthly
  • State exam prep courses or materials – $15 to $100
  • National and Local Board of Realtors – usually $500+ annually, but the price can vary from city to city. Here are a few examples of the costs with MI Realtor Boards + Associations:
  • Multiple Listing Service (MLS) Dues – averages about $30 monthly
  • Sentricon or Supra eKey to show homes – $15 to $20 monthly
  • Continuing Education Fees (18 hours every 3 years) – $75 to $200
  • Business cards – $25 to $100
  • Real Estate Signs – usually about $60 per sign
  • Other marketing materials – varies
  • Michigan License Renewal Fee – $78 (every 3 years)

Considering these added expenses, you will likely need to spend a total of around $1,300 to $1,800 to launch your new real estate career.

Learn more about the costs associated with becoming a real estate agent:

What Expenses to Expect as a New REALTOR >

It is Easy to Become a Successful Real Estate Agent?

You made it this far! Now that you know how to get a Michigan real estate license and find the best brokerage, the next step is getting you prepared to build a successful new business in the Mitten!

Your Michigan real estate fundamentals class is focused on the common terms, ethics and laws when practicing real estate as an agent or salesperson. The pre-licensing courses don’t usually go into much detail (if any) on writing contracts, preparing home valuation reports, researching local market statistics, or promoting your new business.

If you want to be a successful new real estate agent, you need to have a fire in your belly! In the first few years, your motivation and desire to learn everything you can be crucial to your success. Many of you are accustomed to reporting to someone and being told what to do each day at work… but this is not the situation with real estate. You are now the owner of your business and officially the ‘boss’! Now that you’ve officially become a business owner, it’s critical that you start focusing on:

  • Building your personal network (aka “sphere of influence). Being a successful Realtor means having a large network of people you know. You need to get out, socialize and meet new people on a regular basis. Once you’ve built up a substantial network, you have to find ways to stay top of mind.
  • Developing a reputation as a neighborhood specialist. You must understand your market (inside and out) if you want to be the go-to agent in your community. This could entail researching new developments, touring homes in the region, and letting as many people as possible know that you are here to help them.
  • Learning how to market yourself online. You’ll need to build your presence online by adding your profile to all of the popular real estate websites, as well as creating your website and social media pages. Many agents run Facebook ads, Google Pay Per Click campaigns and do a lot of networking on local online groups.
  • Knowing what to say when talking with to potential clients. It’s so important that you learn how to connect and communicate with people about real estate and how to overcome objections.
  • Learn to how to craft an offer. You also have to know the basics of writing a contract, but also the strategies involved in positioning your offer in a way that will help your clients win in a bidding war.

Every year, we talk with dozens of newly licensed agents at Building Better Agents. Most people have no concept of how much it costs or how much they need to learn to be successful. It can be a rewarding and profitable company if you consider yourself a highly driven self-starter who is 100 percent committed to creating a business AND you have the assistance of a fantastic brokerage and mentor.


Woman raising her hand to ask questions in real estate school

Commonly Asked Questions

How long does it take to become a real estate agent in Michigan?

Honestly, most of it is up to you! We estimate about 3 to 4 weeks to get your real estate license in Honestly, that’s up to you! The pre-licensing real estate broker course is only 40 hours, so you could finish that in as little as one week. In the second or third week, you would take your course exam and then apply for your license. Usually, you’ll hear back from the State of Michigan (LARA) within 2-3 business days and will be able to apply to take the state exam. Once you pass the Michigan state real estate exam, you’ll have to get up and running with all the tools and systems at your new brokerage, so that could take another 2 to 4 weeks. All in all, you could be licensed in as little as a month, but we would recommend planning for 6 to 8 weeks before you would be in a place to start working with clients and writing offers.


What if I don’t pass the Michigan real estate exam?

Don’t worry! It’s not uncommon for people to not pass on the first try. You can easily take the exam again, you just have to pay the $76 exam fee again to PSI.


How hard is the MI real estate exam?

Most agents will tell you it’s ‘not easy’. There are a few questions that throw you some curve balls if you aren’t fully prepared, but at least 75% pass on the first try. The Michigan real estate licensing exam is administered by PSI and has 115 multiple-choice questions. You’ll have 180 minutes to complete the exam. To ensure that you pass on the first try, we highly recommend that you study and take as many practice exams as possible. If you’re still not feeling 100% confident, sign up for an online exam prep course.


Where do I take the real estate exam – can I take it online?

You cannot take the exam online, you must take the Michigan state licensing exam at a PSI testing center. There are seven PSI locations within the state of Michigan to choose from. There are locations in Lansing, Gaylord, Grand Rapids, Southfield, and more. View the full list here (just go to page 3 of the PDF).


Can I take the Michigan real estate exam if I don’t have a sponsoring broker yet?

Absolutely! You can take the real estate licensing exam if you do not have a sponsoring broker. Please note that you will not receive your real estate license until you have selected a real estate brokerage.


How do I get a Broker license in Michigan?

If you’ve been an active, full-time Michigan real estate agent for at least 3 years, or have equivalent experience (per LARA Rule 205) you can enroll in the 90 hour Michigan real estate broker course. You’ll have to pass the state broker exam to officially become a broker or broker associate in the state of Michigan.


How much do real estate agents make?

According to ZipRecruiter, as of February 2022, the average US monthly pay is $6,908 (about $82K annually). The average earnings for a real estate agent in Michigan is around $55,000 per year, but it will vary based on the home prices in your area. There are many real estate agents in Michigan that earn well over six or seven figures annually.


How much does it cost to become a real estate agent in Michigan?

We outlined the costs above, but to sum it up, you’re looking at about $300 to $400 to get your license and then you’ll have to join the Board of Realtors, MLS and there is usually a fee to join your brokerage. In total, the initial fees to get started in real estate could range from $1,200 to $1,800 depending on your area and the brokerage you select.



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